European Metals Secures Up to €360M Grant to Power Cinovec Lithium Project

A Landmark Grant for European Lithium Supply

European Metals Holdings Limited (EMH) has taken a significant step forward in securing Europe's lithium future with the announcement that its subsidiary, Geomet s.r.o., has been awarded a grant of up to €360 million from the Czech Government. This funding, part of the Strategic Investments for a Climate-Neutral Economy programme, is one of the largest direct project-level grants for critical raw materials within the European Union, reflecting the high strategic value placed on the Cinovec Lithium Project.

The grant aims to support the development of the Cinovec Project, located in the Czech Republic, which hosts the largest hard rock lithium deposit in Europe. With a combined measured, indicated, and inferred resource totaling over 7 million tonnes of lithium carbonate equivalent, Cinovec is poised to become a cornerstone in the continent’s supply chain for battery-grade lithium, essential for electric vehicles and energy storage.

Strategic Recognition and Support

Cinovec’s importance is underscored by its designation as a Strategic Project under the EU Critical Raw Materials Act and as a Strategic Deposit by the Czech Government. These recognitions facilitate accelerated permitting and access to funding mechanisms such as the European Investment Bank. Additionally, the project has already benefited from a prior €36 million grant from the EU Just Transition Fund, further cementing its role in Europe’s energy transition.

European Metals’ Executive Chairman, Keith Coughlan, described the grant as a “transformational milestone,” highlighting the Czech Government’s commitment to securing critical raw materials for European electromobility. The timing aligns with a renewed positive outlook for lithium demand and a geopolitical push to strengthen supply chain resilience within the EU.

Funding Details and Project Outlook

The grant covers up to 35% of eligible capital expenditures in designated Czech regions, with annual drawdowns linked to project progress reports. The funding is structured as a special-purpose subsidy reimbursing documented capex, with the project expected to reach completion by the end of 2032. The formal grant award is pending completion of administrative processes, after which European Metals will integrate the funding into its project finance structure.

Located near existing infrastructure, including rail lines and power transmission, the Cinovec Project benefits from logistical advantages that support its development. The project’s processing plant, situated at the Prunéřov 1 Power Station site, will produce battery-grade lithium hydroxide and lithium carbonate, vital inputs for the European battery and automotive sectors.

Partnerships and Regional Impact

Geomet s.r.o., which controls the mining licenses for Cinovec, is jointly owned by European Metals (49%) and CEZ a.s. (51%), a major Czech energy group with a strong focus on clean energy and electromobility. CEZ’s involvement brings significant regional expertise and aligns with its strategy to advance renewable energy and battery manufacturing in Central Europe.

As the automotive industry in the Czech Republic anticipates substantial growth in electric vehicle adoption, the Cinovec Project stands to play a critical role in securing a local, sustainable lithium supply. This aligns with broader EU objectives to reduce dependency on external sources and foster a resilient, climate-neutral economy.